Silver markets have rallied significantly during the trading session on Wednesday to reach above the shooting star from last week. That is a very bullish sign honestly, and it is likely to send this market looking towards the 50 day EMA. That of course is a significant indicator that a lot of people pay attention to, so breaking above that would send silver much higher in my estimation. That being said, pay close attention to the $24 level, it has been a major resistance barrier. Clearing that makes this market more “buy-and-hold.”
SILVER Video 14.10.21
On the other hand, we have seen a lot of nasty moves in this market recently, so it would not be a huge surprise to see the market turn right back around and go looking towards the $22.50 level. If it does, then at this point in time I have no idea what will finally pick silver up. One thing is for sure, the only thing you can count on in the silver market is volatility which is its normal attitude anyway.
The market continues to see the US dollar is a major determining factor as to what happens with the silver market in general, as it does have a major negative correlation to what happens here. With that being the case, the market is likely to continue to see a lot of choppiness going forward, but all things being equal this is a market that you need to be very small with your position and only add once you get a bit of clarity and of course the market moving in your favor overall.
For a look at all of today’s economic events, check out our economic calendar.
This article was originally posted on FX Empire